The Disadvantage of the Four-Model Approach Is That ____

question 35

Multiple Choice

The disadvantage of the four-model approach is that ____.

• A) it gives an unclear picture of the current system functions before any modifications or improvements are made
• B) the requirements of a new information system always are different from the current information system
• C) additional time and cost are required to develop a logical and physical model of the current system
• D) it does not take additional steps to avoid mistakes made earlier in systems development

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Definitions:

ATC

Average Total Cost, which is the total cost of production divided by the quantity of output produced.

Total Revenue

The total income generated by a firm or economy from its sale of goods and services, calculated before any expenses are subtracted.

Profit Maximizing

The process by which a firm determines the price and output level that returns the greatest profit, often involving analysis of marginal costs and marginal revenues.

Shutdown

The short-term decision by a firm to cease production due to operating at a loss, where total revenue is not covering variable costs.